Japan is not facing the “dreadful dream” envisioned by Kaoru Yosano. Nor is S&P’s downgrade of Japan’s credit rating the next chapter in the global credit crisis. “Rather than a ‘dreadful dream’, Japan’s leaders face an enticing reality. They have the opportunity to issue more and more bonds at the lowest interest rates seen since the Babylonians invented accounting.”

The “Jasmine revolution” is spreading from Tunisia to Egypt, where Hosni Mubarak has held power for 30 years. The Economist writes, “if Mr Mubarak truly put his country’s interests first, he would immediately promise to retire before the next presidential election, due in September.”

Americans gave “high ratings to President Obama’s State of the Union Address,” according to a USA Today/Gallup Poll. During his third annual address to Congress, Obama focused on jobs, the budget deficit, bipartisanship and foreign policy. His address was rated positively by 65% of those surveyed, versus 28% who reacted negatively.

Standard & Poor’s downgraded Japan’s debt from AA to AA-. No one is expecting an immediate crisis. Most of Japan’s debt is held domestically. Still the amount of debt is stupefying and there are troubling fundamentals. The Times writes, “The Japanese economy was tipped into a painful recession by the global financial crisis, and has only managed a very feeble recovery.” Deflation is jeopardizing this, as is “a rapidly aging population.” Japan’s greying population is also “raising the likelihood of ever-increasing social security and pension obligations.”

Standard & Poor’s downgraded Japan’s debt from AA to AA-. No one is expecting an immediate crisis. Most of Japan’s debt is held domestically. Still the amount of debt is stupefying and there are troubling fundamentals. The Times writes, “The Japanese economy was tipped into a painful recession by the global financial crisis, and has only managed a very feeble recovery.” Deflation is jeopardizing this, as is “a rapidly aging population.” Japan’s greying populaiton is also “raising the likelihood of ever-increasing social security and pension obligations.”

Inflation in India is taking a toll on the stock market and causing foreign investors to rethink their exposure. Who would have guessed “that a rise in the price of onions would put a brake on the stellar growth of India’s stock market”? To battle food price inflation, the Reserve Bank of India has raised interest rates seven times during the past year. As a result, investors are now worried that “high inflation in India could threaten its economy.”

President Obama will give his third State of the Union address on Tuesday. The speech is the right moment “for President Obama to pitch fiscal responsibility.” The Post calls on him to take a “bold” stance by supporting tax increases, cuts in spending and entitlement programs, and a higher retirement age.

“Four of every 10 rows of U.S. corn now go for fuel, not food.” In 2001, the figure was less than one in 14. This helps explain soaring food inflation. The Journal criticizes the government subsidies behind the shift to fuel use. “At a time when the world will need more corn and grains, it makes no sense to devote scarce farmland to make a fuel that exists only because of taxpayer subsidies and mandates.”

In Britain, unemployment “has surged by 49,000 to nearly 2.5 million.” Youths are particularly hard hit. The number of unemployed 16 to 24 year olds has hit a record high at nearly a million, with one in five out of work. The youth unemployment rate stands 250% higher than the overall unemployment rate.

Starbucks is unveiling an even bigger size. At 916ml, it’s bigger than most wine bottles. In fact, it’s “more than the capacity of the average adult stomach.” For now, the new size is only available in the U.S. which, the Telegraph points out, “is the ninth fattest nation in the world and has the greatest obesity problem of any major nation.”